Notice of Determination and Action Pursuant to Section 301: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute, 54245-54264 [2019-22056]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices physical characteristics, such as dimensions, wattage, material composition, or other distinguishing characteristics, that differentiate it from other products that are subject to the safeguard measure. The notice said that the U.S. Trade Representative would not consider requests identifying the product at issue in terms of the identity of the producer, importer, or ultimate consumer, the country of origin, or trademarks or tradenames. The notice also provided that the U.S. Trade Representative would evaluate each request on a case-by-case basis and would grant only those exclusions that did not undermine the objectives of the safeguard measure. The February 2018 notice indicated that the U.S. Trade Representative would consider exclusion requests filed no later than March 16, 2018. The Office of the U.S. Trade Representative (USTR) received 48 product exclusion requests and 213 comments responding to the various requests. The exclusion requests generally fell into seven categories, one of which concerned bifacial solar panels. Proponents asserted that the volume of bifacial solar panel production available for export to the United States was highly limited, that the products would not compete directly with CSPV products produced in the United States, and that the exclusion would not undermine the objectives of the safeguard measure. On September 19, 2018, and June 13, 2019 (the June 2019 notice), the U.S. Trade Representative granted certain product exclusion requests in notices published in the Federal Register (83 FR 47393 and 84 FR 27684) and modified the HTSUS accordingly. In particular, based on the above assertions, the June 2019 notice specifically excluded from application of the safeguard measure ‘‘bifacial solar panels that absorb light and generate electricity on each side of the panel and that consist of only bifacial solar cells that absorb light and generate electricity on each side of the cells.’’ After evaluating newly available information from these and other sources demonstrating that global production of bifacial solar panels is increasing, that the exclusion will likely result in significant increases in imports of bifacial solar panels, and that such panels likely will compete with domestically produced monofacial and bifacial CSPV products in the U.S. market, the U.S. Trade Representative has determined, after consultation with the Secretaries of Commerce and Energy, that maintaining the exclusion will undermine the objectives of the safeguard measure. B. Further Evaluation of the Bifacial Solar Panel Exclusion USTR has received multiple inquiries, requests, and other comments from members of the public. Some have asserted that the bifacial solar panels exclusion granted in the June 2019 notice is broader than the category of products described in the exclusion requests submitted as of March 16, 2018. Others have stated that the exclusion will cause a significant increase in imports of bifacial solar panels, with projections that such a surge is imminent. Annex Effective with respect to articles entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. eastern daylight time on October 28, 2019, U.S. note 18 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified by removing the following from subdivision (c)(iii): ‘‘(15) bifacial solar panels that absorb light and generate electricity on each side of the panel and that consist of only bifacial solar cells that absorb light and VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 C. Withdrawal of the Bifacial Solar Panel Exclusion Based on an evaluation of the factors set out in the February 2018 notice, and further consideration of the exclusion granted for bifacial solar panels in the June 2019 notice, the U.S. Trade Representative has determined after consultation with the Secretaries of Commerce and Energy to withdraw that exclusion. Accordingly, as set out in the Annex to this notice, USTR is modifying subdivision (c)(iii) of U.S. note 18 to subchapter III of chapter 99 of the HTSUS to remove subdivision (c)(iii)(15), which implements the exclusion of bifacial solar panels. D. Technical Changes to the HTSUS It has come to the attention of USTR that certain technical clarifications to the Annex will facilitate administration of the safeguard measure. Presidential Proclamation 6969 of January 27, 1997 (62 FR 4415) authorizes the U.S. Trade Representative to exercise the authority provided to the President under section 604 of the Trade Act of 1974 (19 U.S.C. 2483) to embody rectifications, technical or conforming changes, or similar modifications in the HTSUS. Pursuant to this delegated authority, the U.S. Trade Representative modifies the HTSUS to make the technical changes set out in the Annex to this notice. PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 54245 generate electricity on each side of the cells;’’ U.S. note 18 to subchapter III of chapter 99 of the HTSUS is further modified by redesignating current subdivisions (c)(iii)(16) and (c)(iii)(17) as subdivisions (c)(iii)(15) and (c)(iii)(16), respectively. U.S. note 18 to subchapter III of chapter 99 of the HTSUS is further modified by striking from subdivision (c)(i) the HTSUS number ‘‘8541.40.6030’’ and by inserting in lieu thereof ‘‘8541.40.6025’’. U.S. note 18 to subchapter III of chapter 99 of the HTSUS is further modified by striking from subdivision (g) of such note the HTSUS number ‘‘8541.40.6020’’ and by inserting in lieu thereof ‘‘8541.40.6015’’. Jeffrey Gerrish, Deputy United States Trade Representative, Office of the U.S. Trade Representative. [FR Doc. 2019–22074 Filed 10–8–19; 8:45 am] BILLING CODE 3290–F0–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE [Docket No. USTR–2019–0003] Notice of Determination and Action Pursuant to Section 301: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute Office of the United States Trade Representative. ACTION: Notice of determinations and action. AGENCY: The U.S. Trade Representative has determined that the European Union (EU) and certain member States have denied U.S. rights under the World Trade Organization (WTO) Agreement and have failed to implement WTO Dispute Settlement Body recommendations concerning certain subsidies to the EU large civil aircraft industry. The U.S. Trade Representative has determined to take action in the form of additional duties on products of certain member States of the EU, as specified in Annex A to this notice. DATES: The additional duties set out in Annex A are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on October 18, 2019. FOR FURTHER INFORMATION CONTACT: For questions about the determinations in this investigation, contact Assistant General Counsel Megan Grimball, (202) 395–5725, or Director for Europe SUMMARY: E:\FR\FM\09OCN1.SGM 09OCN1 54246 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES Michael Rogers, at (202) 395–3320. For questions on customs classification of products identified in Annex A, contact Traderemedy@cbp.dhs.gov. SUPPLEMENTARY INFORMATION: A. Proceedings in the Investigation On April 12, 2019, the U.S. Trade Representative announced the initiation of an investigation to enforce U.S. rights in the WTO dispute against the EU and certain EU member States addressed to subsidies on large civil aircraft. See 84 FR 15028 (April 12 notice). The April 12 notice contains background information on the investigation and the dispute settlement proceedings, as well as the website where you can find the WTO reports: https://www.wto.org/english/ tratop_e/dispu_e/cases_e/ds316_e.htm. The April 12 notice solicited comments on a proposed determination that, inter alia, the EU and certain member States have denied U.S. rights under the WTO Agreement, and in particular, under Articles 5 and 6.3 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the General Agreement on Tariffs and Trade 1994 (GATT 1994), and have failed to comply with the WTO Dispute Settlement Body (DSB) recommendations to bring the WTOinconsistent subsidies into compliance with WTO obligations. The April 12 notice invited public comment on a proposed action in the form of an additional ad valorem duty of up to 100 percent on products of EU member States to be drawn from a list of 317 tariff subheadings and 9 statistical reporting numbers of the Harmonized Tariff Schedule of the United States (HTSUS) included in the annex to that notice. The public comment process following the April 12 notice included an opportunity for the submission of written comments, and the opportunity to participate in a public hearing. The Office of the United States Trade Representative (USTR) received over 600 submissions, and held a 2 day public hearing where 47 witnesses provided testimony. In response to these public comments, and upon further analysis, USTR published a notice inviting public comment on a second list of products also being considered for an additional ad valorem duty of up to 100 percent. See 84 FR 32248 (July 5, 2019) (July 5 notice). USTR received nearly 1,900 submissions in response to the July 5 notice, and held a hearing on August 5, 2019, where 31 witnesses provided testimony. The public versions of submissions received in response to the April 12 and VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 July 5 notices, as well as transcripts of both hearings, are available on www.regulations.gov under docket number USTR–2019–0003. As stated in the April 12 and July 5 notices, any final list of products subject to additional tariffs would take into account the report of the WTO Arbitrator on the appropriate level of countermeasures authorized by the WTO. On October 2, 2019, the WTO Arbitrator issued a report that concluded that the appropriate level of countermeasures in response to the WTO-inconsistent launch-aid provided by the EU or certain member States to their large civil aircraft domestic industry is approximately $7.5 billion annually. B. Determination of Whether U.S. Rights Under a Trade Agreement Are Being Denied Based on the original panel and appellate reports, the compliance panel and appellate reports, the report of the WTO Arbitrator, and information obtained during the investigation, including public comments and the advice of the Section 301 Committee, the U.S. Trade Representative has determined, under sections 301(a), 304(a), and 306(b) of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2411(a), 2414(a) and 2416(b)), that the rights of the United States under the GATT 1994 and the SCM Agreement, particularly Articles 5 and 6.3 of the SCM Agreement, are being denied; that subsidies provided by the EU and certain member States violate, or are inconsistent with, the provisions of these agreements; and that the EU has not satisfactorily implemented a recommendation of the WTO DSB. For these reasons, the U.S. Trade Representative has made an affirmative determination of actionability under sections 301(a), and 304(a)(1)(A) of the Trade Act. C. Determination of Action Upon making an affirmative determination that U.S. rights under a trade agreement are being denied, or that an act, policy, or practice of a foreign country violates, or is inconsistent with, the provisions of, a trade agreement, section 301(a) of the Trade Act provides that the U.S. Trade Representative shall take all appropriate and feasible action authorized under section 301(c), subject to the specific direction, if any, of the President regarding such action, and all other appropriate and feasible action within the power of the President that the President may direct the U.S. Trade Representative to take under section PO 00000 Frm 00145 Fmt 4703 Sfmt 4703 301(a), to enforce such rights or to obtain the elimination of such act, policy, or practice. Pursuant to sections 301(a), 301(c), 304(a)(1)(B), and 306(b) of the Trade Act (19 U.S.C. 2411(a), 2411(c), 2414(a)(1)(B), and 2416(b)), the U.S. Trade Representative has determined to impose additional duties on products of certain EU member States, as specified in Annex A to this notice. The annual trade value of the list of tariff subheadings subject to additional duties is approximately $7.5 billion, which is consistent with the WTO Arbitrator’s finding on the appropriate level of countermeasures. Annex A identifies the products covered by the action, the rate of duty to be assessed, and the EU member States affected. The final list of products and rates of additional duty take into account the public comments and the testimony from the public hearings, the advice of advisory committees, and the advice of the Section 301 Committee. In accordance with section 306(b)(2)(F) of the Trade Act (19 U.S.C. 2416(b)(2)(F)), Annex A includes reciprocal goods of the affected industry. Annex B contains the same list of tariff subheadings, with unofficial descriptions of the types of products covered in each subheading. In order to implement this determination, effective October 18, 2019, subchapter III of chapter 99 of the HTSUS is modified by Annex A of this notice. Products provided for in new HTSUS subheading 9903.89.05 will be subject to an additional ad valorem duty of 10 percent. Products provided for in new HTSUS subheadings 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, and 9903.89.49, will be subject to an additional ad valorem duty of 25 percent. The additional duties provided for in the new HTSUS subheadings established by Annex A apply in addition to all other applicable duties, fees, exactions, and charges. Any product listed in Annex A, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on October 18, 2019, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the E:\FR\FM\09OCN1.SGM 09OCN1 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 appropriate, the U.S. Trade Representative will take into account the public comments and testimony previously provided in response to the April 12 and July 5 notices. USTR remains open to discussing matters PO 00000 Frm 00146 Fmt 4703 Sfmt 4725 related to this investigation with the EU and EU member States. Joseph Barloon, General Counsel, Office of the U.S. Trade Representative. BILLING CODE 3290–F0–P E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.002</GPH> khammond on DSKJM1Z7X2PROD with NOTICES classification under the applicable HTSUS subheading. The U.S. Trade Representative will continue to consider the action taken in this investigation. In determining whether future modifications may be 54247 VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00147 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.003</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54248 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00148 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54249 EN09OC19.004</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00149 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.005</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54250 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00150 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54251 EN09OC19.006</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00151 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.007</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54252 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54253 EN09OC19.008</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00153 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.009</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54254 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00154 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54255 EN09OC19.010</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00155 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.011</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54256 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00156 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54257 EN09OC19.012</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00157 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.013</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54258 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00158 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54259 EN09OC19.014</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00159 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.015</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54260 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00160 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54261 EN09OC19.016</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices VerDate Sep<11>2014 Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00161 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.017</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54262 VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00162 Fmt 4703 Sfmt 4725 E:\FR\FM\09OCN1.SGM 09OCN1 54263 EN09OC19.018</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices [FR Doc. 2019–22056 Filed 10–8–19; 8:45 am] BILLING CODE 3290–F0–C VerDate Sep<11>2014 17:13 Oct 08, 2019 Jkt 250001 PO 00000 Frm 00163 Fmt 4703 Sfmt 4703 E:\FR\FM\09OCN1.SGM 09OCN1 EN09OC19.019</GPH> khammond on DSKJM1Z7X2PROD with NOTICES 54264

Agencies

[Federal Register Volume 84, Number 196 (Wednesday, October 9, 2019)]
[Notices]
[Pages 54245-54264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22056]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. USTR-2019-0003]


Notice of Determination and Action Pursuant to Section 301: 
Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determinations and action.

-----------------------------------------------------------------------

SUMMARY: The U.S. Trade Representative has determined that the European 
Union (EU) and certain member States have denied U.S. rights under the 
World Trade Organization (WTO) Agreement and have failed to implement 
WTO Dispute Settlement Body recommendations concerning certain 
subsidies to the EU large civil aircraft industry. The U.S. Trade 
Representative has determined to take action in the form of additional 
duties on products of certain member States of the EU, as specified in 
Annex A to this notice.

DATES: The additional duties set out in Annex A are applicable with 
respect to products that are entered for consumption, or withdrawn from 
warehouse for consumption, on or after 12:01 a.m. eastern daylight time 
on October 18, 2019.

FOR FURTHER INFORMATION CONTACT:  For questions about the 
determinations in this investigation, contact Assistant General Counsel 
Megan Grimball, (202) 395-5725, or Director for Europe

[[Page 54246]]

Michael Rogers, at (202) 395-3320. For questions on customs 
classification of products identified in Annex A, contact 
[email protected].

SUPPLEMENTARY INFORMATION: 

A. Proceedings in the Investigation

    On April 12, 2019, the U.S. Trade Representative announced the 
initiation of an investigation to enforce U.S. rights in the WTO 
dispute against the EU and certain EU member States addressed to 
subsidies on large civil aircraft. See 84 FR 15028 (April 12 notice). 
The April 12 notice contains background information on the 
investigation and the dispute settlement proceedings, as well as the 
website where you can find the WTO reports: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds316_e.htm.
    The April 12 notice solicited comments on a proposed determination 
that, inter alia, the EU and certain member States have denied U.S. 
rights under the WTO Agreement, and in particular, under Articles 5 and 
6.3 of the Agreement on Subsidies and Countervailing Measures (SCM 
Agreement) and the General Agreement on Tariffs and Trade 1994 (GATT 
1994), and have failed to comply with the WTO Dispute Settlement Body 
(DSB) recommendations to bring the WTO-inconsistent subsidies into 
compliance with WTO obligations. The April 12 notice invited public 
comment on a proposed action in the form of an additional ad valorem 
duty of up to 100 percent on products of EU member States to be drawn 
from a list of 317 tariff subheadings and 9 statistical reporting 
numbers of the Harmonized Tariff Schedule of the United States (HTSUS) 
included in the annex to that notice.
    The public comment process following the April 12 notice included 
an opportunity for the submission of written comments, and the 
opportunity to participate in a public hearing. The Office of the 
United States Trade Representative (USTR) received over 600 
submissions, and held a 2 day public hearing where 47 witnesses 
provided testimony.
    In response to these public comments, and upon further analysis, 
USTR published a notice inviting public comment on a second list of 
products also being considered for an additional ad valorem duty of up 
to 100 percent. See 84 FR 32248 (July 5, 2019) (July 5 notice). USTR 
received nearly 1,900 submissions in response to the July 5 notice, and 
held a hearing on August 5, 2019, where 31 witnesses provided 
testimony.
    The public versions of submissions received in response to the 
April 12 and July 5 notices, as well as transcripts of both hearings, 
are available on www.regulations.gov under docket number USTR-2019-
0003.
    As stated in the April 12 and July 5 notices, any final list of 
products subject to additional tariffs would take into account the 
report of the WTO Arbitrator on the appropriate level of 
countermeasures authorized by the WTO. On October 2, 2019, the WTO 
Arbitrator issued a report that concluded that the appropriate level of 
countermeasures in response to the WTO-inconsistent launch-aid provided 
by the EU or certain member States to their large civil aircraft 
domestic industry is approximately $7.5 billion annually.

B. Determination of Whether U.S. Rights Under a Trade Agreement Are 
Being Denied

    Based on the original panel and appellate reports, the compliance 
panel and appellate reports, the report of the WTO Arbitrator, and 
information obtained during the investigation, including public 
comments and the advice of the Section 301 Committee, the U.S. Trade 
Representative has determined, under sections 301(a), 304(a), and 
306(b) of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2411(a), 2414(a) 
and 2416(b)), that the rights of the United States under the GATT 1994 
and the SCM Agreement, particularly Articles 5 and 6.3 of the SCM 
Agreement, are being denied; that subsidies provided by the EU and 
certain member States violate, or are inconsistent with, the provisions 
of these agreements; and that the EU has not satisfactorily implemented 
a recommendation of the WTO DSB. For these reasons, the U.S. Trade 
Representative has made an affirmative determination of actionability 
under sections 301(a), and 304(a)(1)(A) of the Trade Act.

C. Determination of Action

    Upon making an affirmative determination that U.S. rights under a 
trade agreement are being denied, or that an act, policy, or practice 
of a foreign country violates, or is inconsistent with, the provisions 
of, a trade agreement, section 301(a) of the Trade Act provides that 
the U.S. Trade Representative shall take all appropriate and feasible 
action authorized under section 301(c), subject to the specific 
direction, if any, of the President regarding such action, and all 
other appropriate and feasible action within the power of the President 
that the President may direct the U.S. Trade Representative to take 
under section 301(a), to enforce such rights or to obtain the 
elimination of such act, policy, or practice.
    Pursuant to sections 301(a), 301(c), 304(a)(1)(B), and 306(b) of 
the Trade Act (19 U.S.C. 2411(a), 2411(c), 2414(a)(1)(B), and 2416(b)), 
the U.S. Trade Representative has determined to impose additional 
duties on products of certain EU member States, as specified in Annex A 
to this notice. The annual trade value of the list of tariff 
subheadings subject to additional duties is approximately $7.5 billion, 
which is consistent with the WTO Arbitrator's finding on the 
appropriate level of countermeasures. Annex A identifies the products 
covered by the action, the rate of duty to be assessed, and the EU 
member States affected. The final list of products and rates of 
additional duty take into account the public comments and the testimony 
from the public hearings, the advice of advisory committees, and the 
advice of the Section 301 Committee. In accordance with section 
306(b)(2)(F) of the Trade Act (19 U.S.C. 2416(b)(2)(F)), Annex A 
includes reciprocal goods of the affected industry. Annex B contains 
the same list of tariff subheadings, with unofficial descriptions of 
the types of products covered in each subheading.
    In order to implement this determination, effective October 18, 
2019, subchapter III of chapter 99 of the HTSUS is modified by Annex A 
of this notice. Products provided for in new HTSUS subheading 
9903.89.05 will be subject to an additional ad valorem duty of 10 
percent. Products provided for in new HTSUS subheadings 9903.89.10, 
9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 
9903.89.31, 9903.89.34, 9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, 
and 9903.89.49, will be subject to an additional ad valorem duty of 25 
percent.
    The additional duties provided for in the new HTSUS subheadings 
established by Annex A apply in addition to all other applicable 
duties, fees, exactions, and charges.
    Any product listed in Annex A, except any product that is eligible 
for admission under `domestic status' as defined in 19 CFR 146.43, 
which is subject to the additional duty imposed by this determination, 
and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. 
eastern daylight time on October 18, 2019, only may be admitted as 
`privileged foreign status' as defined in 19 CFR 146.41. Such products 
will be subject upon entry for consumption to any ad valorem rates of 
duty or quantitative limitations related to the

[[Page 54247]]

classification under the applicable HTSUS subheading.
    The U.S. Trade Representative will continue to consider the action 
taken in this investigation. In determining whether future 
modifications may be appropriate, the U.S. Trade Representative will 
take into account the public comments and testimony previously provided 
in response to the April 12 and July 5 notices. USTR remains open to 
discussing matters related to this investigation with the EU and EU 
member States.

Joseph Barloon,
General Counsel, Office of the U.S. Trade Representative.
BILLING CODE 3290-F0-P
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[FR Doc. 2019-22056 Filed 10-8-19; 8:45 am]
 BILLING CODE 3290-F0-C